Benjamin Moore CEO on the housing market and consumer demand

• The housing market, driven by affordability issues and high mortgage rates (over 6% for 70% of mortgages), is a 'headwind' and 'drag' on Benjamin Moore's business.
• Rising oil prices are increasing raw material costs for Benjamin Moore, as many of their paint derivatives are petrochemically based, leading to 'force majeures' from suppliers.
• The company is focusing on internal cost containment, pulling back on capital spend, and pausing some discretionary initiatives, hoping for market loosening in the second half of the year.
• While the premium segment remains strong, Benjamin Moore is observing some 'trading down' in its mid-tier paint brands due to reduced consumer discretionary income and fewer home improvement projects.

Benjamin Moore's CEO discusses significant headwinds from the housing market, including high mortgage rates and low housing churn, which are impacting demand. The company is also grappling with rising raw material costs driven by oil prices and is implementing internal cost containment measures, including reduced capital and discretionary spending.